Pier 1 to Sell Credit Card Portfolio to Chase
Pier 1 Imports Inc. agreed to sell its private-label credit card operations to JPMorgan Chase for about $155 million, the companies announced Aug. 30.
In addition, Pier 1 and Chase, Wilmington, DE, will enter into a long-term marketing and servicing agreement. Chase will provide credit and customer service benefits to Pier 1 cardholders and will also offer special financing terms to Pier 1 customers. Pier 1, Fort Worth, TX, will receive future ongoing payments based on credit card sales, new account generation and other credit-related activities.
The two companies also agreed to work together on marketing initiatives designed to increase Pier 1's retail sales, enhance credit growth and profitability.
Pier 1's portfolio includes receivables of approximately $140 million and almost 1 million active accounts.
The transaction is expected to close in Pier 1's fiscal third quarter.